Caption: Board of Trustees Minutes - 1992
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BOARD OF TRUSTEES
Authorization to Impose and Use a Passenger Facility Charge at Willard Airport
(5) The Aviation Safety and Capacity Act of 1990 required the U.S. Department of Transportation to issue regulations under which a public agency may be authorized to impose an airport passenger facility charge (PFC) of $1, $2, or $3 per enplaned passenger at a commercial service airport it controls. The proceeds from the PFCs are to be used to finance eligible airport-related projects that preserve or enhance safety, capacity, or security of the national air transportation system, reduce noise from an airport that is part of such system, or furnish opportunities for enhanced competition between or among air carriers. The PFC proposal has been reviewed with the Champaign County Chamber of Commerce Air Subcommittee and the Transportation Committee which unanimously approved a motion to forward a resolution to the chamber's Board of Directors to support the $3 PFC for a period of five years.1 On October 20, 1992, the chamber's Executive Committee unanimously endorsed the resolution. The chancellor at Urbana has recommended that the University apply for Federal authority to impose and use a $3 passenger facility charge for a period of five years to provide funding, in whole or in part, for the projects listed in the 1994-1998 Airport Program of Improvements and subsequent amendments. The vice president for business and finance concurs. I recommend approval.
On motion of Dr. Bacon, this recommendation was approved. By consensus, the board agreed that one roll call vote would be taken and considered the vote on each agenda item nos. 6 through 21 inclusive. The recommendations were individually discussed but acted upon at one time. (The record of board action appears at the end of each item.)
Contract, Business Advisory Services for the University of Illinois Hospital and Clinics, Chicago
(6) The chancellor at Chicago has recommended contracting with KPMG Peat Marwick (Chicago office) for business advisory services related to reimbursement for hospital charges from Medicare and other payors (also referred to as "third-party payors*'). The hospital Finance Department must respond to adjustments that have been made in reimbursements for hospital services and to recover these reimbursements from Medicare, Blue Cross, and other commercial insurers. This involves: (a) providing documentation necessary to support the University hospital's position on certain charges that have been presented for payment; and (b) pursuing reimbursement for hospital and professional services within the broadest interpretations of the rules and regulations. The hospital hopes to realize approximately $2 million by this effort. It will involve some legal appeals. Retroactive changes in Medicare reimbursement regulations and rules, as well as greater attention to audit and documentation requirements, are expected to have significant financial impact on the University hospital and its network of affiliates. To aid this, special training of hospital staff in this area of reimbursements is necessary. Four firms were asked to submit proposals, three responded. The proposals were reviewed by an administrative committee which found them comparable in regard to deliverables, cost, competency, and staffing. KPMG Peat Marwick was chosen because of their prior work at the University hospital in this area. In addition, they
At the $3 PFC level, income is estimated at approximately $500,000 per year.